2010 January :: The Construction Management Pro

1-10 Mortgage rates on 30-year loans fall to 5.09 percent

January 10, 2010

The Federal Reserve’s program to buy securities backed by mortgages will end at about the same time as the Home buyer tax credit. If the employment numbers don’t get much better, we could see another decline in home sales! One number to watch is what is going on in the commercial real estate market. If we see continued increase in commercial vacancies, then employment is not expanding and companies are not adding jobs. See Article in Asbury Park Press

Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors. Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.” Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010.

The question is whether expected job growth in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. if you think so, then home prices will stabilize or even modestly rise; if not well here we go again.

Did you like this? Share it:

1-8-10 Construction Risks

January 10, 2010

Renewed by membership with ULI and CMAA.

The highest potential risk in a real estate deal is during the construction process. We mitigate those risks by understanding the hidden problems in building design, code requirements and contractors who look to maximize their profits at the expense of owners. At TCAI we stand between the contractor and our clients.

CMAA has a great website, even for non members. Found this podcast on Construction Risks and thought I would share it with you.

Hear More

Did you like this? Share it:

1-4 Happy New Year

January 8, 2010

This is my first post of the New Year. Wishing All a healthy and joyful Year!

We have heard a lot of talk about Green Building and how to use it in renovations. I have started the process of looking into this myself. I have been certified as a Green Builder by NAHB, but am looking for practical applications for home renovation projects. I will post what I find on this blog.  Here is the first tip of the new year.

The USBGC say to Discontinue unconditioned basement or crawl-space ventilation because in more humid climates, including most of the United States east of the Mississippi River, summertime ventilation of basements and unconditioned crawl spaces has been found to introduce more moisture than it removes. Therefore, in most situations, it is advisable to keep windows and ventilation ports to these spaces closed.

Basement windows are always a problem. They usually have rotten frames, don’t close properly, are used for access to the property by vandals. Therefore, we will be using glass block to close up all basement windows on residential properties that we do. This will do a couple of things. First it will eliminate future maintenance, adhere to the USGBC  recommendation to eliminate basement ventilation while providing light.

Did you like this? Share it: